Statute of Frauds

Question 1

Types of Contracts that fall under

Statute of Frauds

Answer 1

1. Contract for the sale of real estate
2. Lease of real estate for a term longer than one year
3. An agreement which is not to be performed within one year from the making of the agreement
4. Contract for the sale of goods greater than $500

Question 2

For an agreement which is not to be performed

within one year from the making of the agreement

Answer 2

• This is construed as “can’t possibly be performed within one year”
• If K could possibly be performed within a year, the contract is outside the statue of frauds
  
  • EX: Contract to employ me for the rest of my life is outside the statute of frauds because I could possibly die within the next year and your performance would have been completed within a year
• TX Exception: If both parties do not expect the contract to be performed within a year, the contract is within the statute of frauds

Question 3

Analysis for SOF

Answer 3

Analysis for SOF

1. Is the promise within the Statute?
2. Was there a “writing”?
3. Did the party sign the writing?

Question 4

SOF

Specially Manufactured Goods Exception

Answer 4

If goods are manufactured by seller especially for the buyer and are not suitable for sale to others in the ordinary course of seller’s business, then the SOF does not apply

• This exists when the seller is stuck with something that only the buyer can use because of the specificity of the specs

Question 5

SOF

Part Performance Exception

Answer 5

If the non-breaching party has performed some of the contract, then the “actually performed” part of the contract is removed from SOF

• but the remaining executory portion of the contract is still governed by the SOF
• Only look at performance of party trying to enforce the contract
• Make sure it is actual performance, and not merely actions in the “contemplation of performance”

Question 6

Possibility of recovery for restitution damages

under SOF contract?

Answer 6

Possibility of recovery for restitution damages under SOF contract –> must show unjust enrichment/benefit on the party of the other party

Question 7

What is “a writing” under SOF?

Answer 7

What is writing?

• Characters formed for the purpose of communicating, no matter the medium
• So electronic communication can constitute a writing

Question 8

SOF Signature

Answer 8

UCC Definition:

• Any signature or mark on a document that indicates the party adopts the document as your writing
• A persons name on an email acts as a signature

Question 9

UCC Statute of Frauds

Exceptions

Answer 9

Exception: If party seeking to enforce oral contract sends written confirmation and the other party knows what is in the writing and does not object within 10 days, the writing is good enough to satisfy the statute of frauds
Other Exceptions

• Part performance: remember, by party trying to enforce the oral agreement
• Specially manufactured goods: goods seller would not have made in ordinary course of business
• Admission: If party against whom oral agreement is being enforced admits during the course of litigation that there was a contract, it is outside the statute of frauds for UCC purposes
• For UCC, the only essential term the writing must contain is quantity